When it comes to the stock market, there are different categories of stocks based on their market capitalization. Mega cap stocks are the largest of them all, with market values typically exceeding $200 billion. These companies are global giants, with operations spanning across the world.
If you’re looking to invest in mega cap stocks, here’s what you need to know about these market giants and some of the top players in this category.
Understanding Mega Cap Stocks
Mega cap stocks are companies with market capitalizations above $200 billion. They are often well-established and generate tens of billions of dollars in revenue annually. Some well-known mega cap stocks include Apple, Amazon, and Tesla, companies that have a global presence and a strong market influence.
These mega cap stocks are often heavily represented in popular stock market indices like the S&P 500. For example, Apple and Microsoft make up a significant portion of Vanguard’s S&P 500 ETF, highlighting their importance in the market.
Top Mega Cap Stocks
*Market cap data as of Sept. 11, 2024; revenue as of most recent fiscal year.
1. Apple (AAPL)
Apple is a tech giant known for its popular products like the iPhone and iPad. With nearly $400 billion in annual revenue, Apple has a loyal customer base that drives its success.
Market cap: $3.36 trillion
Annual revenue: $383.3 billion
2. Microsoft (MSFT)
Microsoft is a leader in software, services, and devices. With products like Microsoft Office and a growing cloud business, Microsoft continues to innovate and expand its market reach.
Market cap: $3.09 trillion
Annual revenue: $245.1 billion
3. Nvidia (NVDA)
Nvidia is a key player in graphics processing units used in gaming and artificial intelligence. With a revenue expected to surpass $125 billion, Nvidia is a significant player in the tech industry.
Market cap: $2.70 trillion
Annual revenue: $60.9 billion
4. Amazon (AMZN)
Amazon is a dominant force in online retail and cloud services. With a wide range of offerings and a market cap of $1.87 trillion, Amazon continues to shape the e-commerce landscape.
Market cap: $1.87 trillion
Annual revenue: $574.8 billion
5. Alphabet (GOOGL and GOOG)
Alphabet, the parent company of Google, is a powerhouse in online advertising and technology. With a market cap of $1.85 trillion, Alphabet’s reach extends beyond just the search engine.
Market cap: $1.85 trillion
Annual revenue: $307.4 billion
6. Meta Platforms (META)
Formerly known as Facebook, Meta Platforms is a leader in social networking and digital advertising. With platforms like Facebook and Instagram, Meta continues to drive engagement and revenue.
Market cap: $1.28 trillion
Annual revenue: $134.9 billion
7. Berkshire Hathaway (BRK.B)
Berkshire Hathaway, led by Warren Buffett, is a conglomerate with diverse business interests. From insurance to railroads, Berkshire Hathaway is a major player in various industries.
Market cap: $967.5 billion
Annual revenue: $364.5 billion
8. Eli Lilly and Company (LLY)
Eli Lilly is a pharmaceutical company known for its innovative drugs. With a focus on human health, Eli Lilly continues to make significant contributions to the healthcare industry.
Market cap: $816.5 billion
Annual revenue: $34.1 billion
9. Tesla (TSLA)
Tesla, led by Elon Musk, is a pioneer in electric vehicles. With a market cap of $711.0 billion, Tesla continues to disrupt the automotive industry with its innovative products.
Market cap: $711.0 billion
Annual revenue: $96.8 billion
10. Broadcom (AVGO)
Broadcom is a tech company specializing in semiconductor and infrastructure software solutions. With recent acquisitions and a market cap of $682.8 billion, Broadcom is a key player in the tech sector.
Market cap: $682.8 billion
Annual revenue: $35.8 billion
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. Past performance is not indicative of future results.